Journal Entry

3 things can be done:

1) If possible get a bill in the month of march only...or

2) U can create a provision entry for the amount in march...Deduct tds if applicable or,

3) Book the bill April and classify the same as a PPA..

pass the entry in April.Dont do anything else.

Agreed with Abhilesh

you have to pass a provision entry in march first and then in april you can adjust it with provision made.

MARCH

1. By Expense a/c...Dr.

By TDS Payable a/c(if any)

To Provision for Expense A/c Cr.

(Being Provision Created)

Expense will be transfered to P/L a/c and provision will be shown in Balance Sheet under Current

Liabilities

APRIL

By Provision For expense a/c Dr.

To Creditor/Bank a/c Cr.

agree with Rajat

in march           exp. A/c Dr    ...........

                                      To Provision for Exp. ..............

next year reverse of above entry will be passed and next entry will be as below:

In april             exp a/c Dr

                                     to Bank a/c

It doesnt matters whether bill is raised afterwards in april as per accrual concept work is related to march hence liablity is accrued in march. and also when bill is raised by the party it is quoted upon the bill that work done for the month of march while the bill is dated 5 april. 

we have to create a provision of the actual amount if known and then payment will be in next year 

agreed with salil as it is not possible to catch whether the expense is related to march so you have to pass entry in april only & nothingelse.........

as per bill you are donig expense in april how can we pass entry in march.

u should pass provisional entry on 31st march otherwise it wil hav to transfer in prior period exps. a/c if books r maintained on mercantile basis.but if books hav been maintained on cash basis then u can incorporate on 5th april.

i  agree with rajat garg

jitendra kumar garg

Because the expense was incurred in March, you have to book it in the same month; as per accrual concept. You have to make the provision entry of adhoc amount based on estimation (if the exact amount is not known) in March and later at the time of receipt of bill you can reverse the provision made.

i agreed with rajat, vishambhar

Originally posted by : Rajat Garg
	you have to pass a provision entry in march first and then in april you can adjust it with provision made. MARCH 1. By Expense a/c...Dr. By TDS Payable a/c(if any) To Provision for Expense A/c Cr. (Being Provision Created) Expense will be transfered to P/L a/c and provision will be shown in Balance Sheet under Current Liabilities   APRIL By Provision For expense a/c Dr. To Creditor/Bank a/c Cr.

 totally agree with rajat

sunil paid rent 5000

how to pass an journal entry

I think as the expense are paid in advance simply we can treat as Advance for goods . It is a simple treatement rather than going for complex ones. As u received the bill only after the closure of books, its better to book in the form of advance as it is certainly in the form of advance coz the concerned billing is not been done......